SMALL CAPS ON THE MOVE: Faron Pharma gets green light from US FDA

Faron Pharmaceuticals was one of the significant winners of the week, with its shares up 35 percent.

This increase was driven by positive news from an unexpected source: the US Food and Drug Administration (FDA).

The FDA has effectively streamlined and potentially accelerated a Phase III clinical trial of Faron’s lead drug, Bexmarilimab, which is designed to treat myelodysplastic syndrome, a type of cancer that affects the bone marrow.

The FDA acknowledged the challenges of conducting a comparative trial in patients whose disease has returned or is resistant to treatment.

Instead, he proposed a phase III evaluation for newly diagnosed high-risk patients, eliminating the need for a separate study for patients with relapsed or refractory disease.

This guidance is part of the FDA’s Project Frontrunner, an initiative aimed at accelerating the delivery of promising cancer treatments to patients.

For Faron, this means the proposed study could target a larger group of patients, reduce development costs and ultimately increase sales.

The development is likely to attract interest from major pharmaceutical companies, which often partner with smaller companies like Faron and fund them to develop promising late-stage drugs.

The broader market had a relatively positive week, up 1.7 per cent to 781.53, outperforming the FTSE 100, which was flat during a slow week characterised by low trading volumes.

Mental style was the biggest mover of the week, with its shares up 94 percent after benefiting from a $450 million acquisition in the virtual reality space, thanks to its investment in the Sure Valley Ventures Fund.

The deal is expected to generate around £4.65 million (US$6 million) for Mindflair.

To put this into perspective, Mindflair’s current market cap, even after this impressive run, is just £2.73m.

Among the main winners, Mosman Oil & Gas saw its share price rise 53 percent following its announcement of a pivot into helium.

Similarly, Union Jack OilShares rose 19 percent after it announced the start of drilling its second well at its U.S. venture.

Broker Shore Capital suggested Union Jack could see results from the initial well within a week, potentially leading to production within weeks and recouping drilling costs within months.

This project is considered low risk and low cost compared to projects undertaken in the UK.

Continuing sector-wise, UK oil and gas experienced a 35 per cent drop, erasing gains from the previous week following interest in hydrogen storage.

The broader junior oil and gas sector faced challenges, mainly due to the new Labour administration’s unfavourable stance on new oil and gas exploration in the UK.

Delta Energy bucked the trend in the sector with its shares rising 30 percent after obtaining a license in the last round under the Conservative government, although these were only confirmed earlier this week.

The licence includes the Pharos and Teviot discoveries and the newly added area is considered an extension of an existing exploration project at Deltic.

On the downside, Biome Technologies saw its value plummet 48 percent after issuing a warning over order delays in its bioplastics business.

Software group crimson tide saw its shares fall 33 percent after potential bidder Ideagen walked away from a deal.

Recruiter Norman Broadbent announced plans to take advantage of difficult sector conditions to make acquisitions.

However, the market responded to this announcement and a sharp drop in commission income last year by sending the stock down 21 percent.

Finally, we turn to the Aquis Exchange, often compared to the Isthmian League of football, for one of the success stories of the year.

Incanthera has signed another important commercial agreement for its skincare products.

Luxury cosmetics chain Marionnaud, part of retail conglomerate Watson Group, is buying an additional 250,000 units, adding to a previous order for 100,000 units.

This deal brings Incanthera’s pipeline projects value to around £10 million.

Although the share price has remained largely range-bound this week, it has risen from 6.5p to 28p over the past year, highlighting the success under CEO Tim McCarthy’s leadership.

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